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U.S. Department of Commerce & Bureau of Industry and Security Russia and Belarus Rule Fact Sheet

FOR IMMEDIATE RELEASE

In response to the Russian Federation’s invasion of Ukraine, the Bureau of Industry and Security has issued two final rules. The first rule, “Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR),” (Russia Sanctions rule) which became effective on February 24, 2022, implements new Russia license requirements and licensing policies to protect U.S. national security and foreign policy interests.  The second rule, “Imposition of Sanctions Against Belarus Under the Export Administration Regulations,” (Belarus Sanctions rule) which was effective on March 2, 2022, implements new Belarus license requirements and licensing policies, also to protect U.S. national security and foreign policy interests. 

Additional rules published by BIS imposing sanctions as a result of Russia’s invasion of Ukraine have also been published or are forthcoming. This fact sheet focuses on the Russia Sanctions rule and Belarus Sanctions rule given their significant changes to, and broad applications of, U.S. export controls with respect to these nations.

This fact sheet provides a general overview and summary of the actions being implemented in the rules.  Readers should review the final rules in their entirety for all relevant requirements.  The Russia Sanctions rule builds on existing restrictions on exports to Russia. The Belarus Sanctions rule imposes many of the same restrictions on Belarus.  The two rules implement the following major policies specific to Russia and Russian end-users, and Belarus and Belarusian end-users:

Imposes new Commerce Control List (CCL)-based license requirements for Russia and Belarus.

  • These final rules add new license requirements for all Export Control Classification Numbers (ECCNs) in Categories 3-9 of the Commerce Control List (CCL). Certain of these items, in 58 ECCNs with unilateral controls (including certain include microelectronics, telecommunications items, sensors, navigation equipment, avionics, marine equipment, and aircraft components), were not previously controlled to Russia or Belarus.  BIS’s restrictions should significantly impact Russia’s ability to acquire items it cannot produce itself.  As a result of the U.S. national security and foreign policy concerns raised by Belarus’ substantial enabling of Russia’s invasion of Ukraine, BIS is imposing similarly stringent restrictions on Belarus, in order to prevent the diversion of CCL items from Belarus to Russia or the Russian military.

Applies a review policy of denial to license applications for exports, reexports to or transfers within Russia and Belarus.

  • Under the stringent licensing review policy being implemented, applications for the export, reexport, or transfer (in-country) of items that require a license for Russia or Belarus will be reviewed, with certain limited exceptions, under a policy of denial. The categories reviewed on a case-by-case basis are applications related to safety of flight, maritime safety, civil nuclear safety, humanitarian needs, government space cooperation, civil telecommunications infrastructure, government-to-government activities, and to support limited operations of partner country companies in Russia or Belarus.

Expands the existing Russia ‘military end use’ and ‘military end user’ control scope to all items subject to the EAR.

  • The Russia Sanctions rule’s restrictions on Russian ‘military end users’ and ‘military end uses’ cover all items subject to the EAR with exceptions for food and medicine designated as EAR99.  The Belarus Sanctions rule adds Belarus to the EAR’s ‘military end use’ and ‘military end user’ controls, with a scope mirroring that implemented for Russia, i.e., all items subject to the EAR, except for food and medicine designated as EAR99.

Adds new Foreign Direct Product (FDP) Rules specific to Russia and Russian ‘military end users,’ and Belarus and Belarusian ‘military end users.’

  • Creates a new FDP rule for all of Russia and Belarus (“Russia/Belarus FDP rule”).  To restrict Russia and Belarus’ abilities to acquire certain foreign-produced items, the Russia/Belarus FDP rule establishes a control over foreign-produced items that are: (i) the direct product of certain U.S.-origin software or technology subject to the EAR; or (ii) produced by certain plants or major components thereof which are themselves the direct product of certain U.S.-origin software or technology subject to the EAR.  This control applies when it is known that the foreign-produced item is destined to Russia or Belarus or will be incorporated into or used in the production or development of any part, component, or equipment produced in or destined to Russia or Belarus.  The Russia/Belarus FDP rule does not apply to foreign-produced items that would be designated as EAR99 (items not listed on the CCL), which includes many consumer items used by the Russian and Belarusian people.
     
  • Creates a new foreign direct product rule for Russian and Belarusian military end users (“Russia/Belarus MEU FDP rule”).  The Russia/Belarus MEU FDP rule is more extensive than the Russia/Belarus FDP rule and applies to foreign-produced items that are: (i) the direct product of any software or technology subject to the EAR that is on the CCL; or (ii) produced by certain plants or major components thereof which are themselves the direct product of any U.S.-origin software or technology on the CCL.  Such items will be subject to the EAR and require a license if an entity with a footnote 3 designation on the Entity List is a party to the transaction, or if there is knowledge that the item will be incorporated into or used in the production or development of any part, component, or equipment produced, purchased, or ordered by any entity with a footnote 3 designation (which is established in this rule and described below) on the Entity List.  These restrictions apply to all items, including those designated EAR99, with certain exceptions, and impose a license requirement for footnote 3-designated Russian or Belarusian military end users.
     
  • Partner Country Exclusion from Russia/Belarus and Russia/Belarus MEU FDP rules.  Certain partner countries that have committed to implementing substantially similar measures are not or will not be subject to the Russia/Belarus and Russia/Belarus MEU FDP rules.  Exports, reexports, and transfers (in-country) from the following countries are not subject to these rules:  Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, New Zealand, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, and the United Kingdom.

Significantly restricts the use of EAR license exceptions for exports, reexports and transfers (in-country) to Russia or Belarus.

Certain sections of the following license exceptions are available for exports to Russia or Belarus:

  • TMP (Temporary Imports, Exports, Reexports, and Transfers in Country), for items for use by the news media;
  • GOV, for certain government activities;
  • TSU (Technology and Software Unrestricted), for software updates to civil end users that are subsidiaries of, or joint ventures with, companies headquartered in the United States or partner countries;
  • BAG (Baggage), for baggage, excluding firearms and ammunition;
  • AVS (Aircraft, Vessels, and Spacecraft), for aircraft flying into and out of Russia and Belarus, excluding aircraft registered in, owned, controlled by, or under charter or lease by Russia or a national of Russia;
  • ENC (Encryption Commodities, Software, and Technology), for encryption items, limited for use by civil end users that are subsidiaries of, or joint ventures with, companies headquartered in the United States or specified partner countries; and CCD (Consumer Communication Devices), for consumer communication devices, but not if they are destined for government end users or certain individuals associated with the governments of Russia or Belarus. The terms and conditions of License Exception CCD exclude non-consumer servers; the servers that are available under License Exception CCD must be exported, reexported, and transferred (in-country) in accordance with CCD’s terms and conditions.  Certain consumer servers for home or personal use may be available under License Exception CCD in order to make it more difficult for the Russian government to control the information getting to the Russian people.

Applies the Entity List footnote 3 designation and adds 51 entities.

  • As described above, Entity List footnote 3 indicates that the Russia/Belarus MEU FDP rule applies to that entity.  Thus, a license is required to export, reexport, or transfer (in-country) all items subject to the EAR (including foreign-produced items under the Russia/Belarus MEU FDP rule) to these entities, with limited exceptions.  Footnote 3 also applies to the Russian Ministry of Defence, including the Armed Forces of Russia, wherever located, as well as the Belarusian Ministry of Defence and its components.  License applications for footnote 3-designated entities will be reviewed under a policy of denial in all cases. 

Additional entities may be added to the Entity List in the future.

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